September 7th, 2004
All Weymouth Steel Corporation Employees
Weymouth Steel Corporation
Dear all Weymouth employees:
In recent years, the steel industry has become extremely competitive due to the entering of many overseas companies. There are many firms exit out of the industry because they could not handle the competition. Thanks to your hard-working and dedicating, our company still has a very good brand name in the market; our products provide great value to our customers. However, this does not mean that our company is not affected by the stiff competition. In order to stay in the competition, the company needs to acquire and install new processing machines. Our capital spending expenditures are about $2 billion a year, which is a huge amount of money. As a result, our response to this environment is to take some steps to reduce the costs.
During previous quarters, as the competition stiff, we acted quickly. We shut down some several smaller/ less efficient mills, restricted the use of overtime and contemporary salaried employees, reducing traveling, and so on. As a result, our spending expenditures decreased to $2 billion. Nevertheless, it was not enough. Now we need to do more. As part of the process of reducing costs, we will have to eliminate a total number of 12,000 employees, including hourly and salaried.
There will be 2,000 out of 10,000 salaried employees affected. 1,000 salaried employees might be eliminated through normal attrition, early retirement and transfer. The other 1,000 salaried employees might have to be let go. 10,000 out of 50,000 hourly employees might also have to be let go.
For all of you who are affected by this lay-off, you have my deepest and sincere sorry. I know this will be a tough time for you and I want to assure you that we will provide help and support during this transition. We will do everything we could to assist you in finding new jobs. We will also offer some benefits. As for...